BHP Explores New Pathways for U.S. Copper Supply
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy BHP?
Source: Benzinga
- Copper Supply Chain Collaboration: BHP has signed a non-binding letter of intent with Faraday Copper to potentially restart the San Manuel copper mine in Arizona, which is expected to enhance the resilience of the U.S. copper supply chain and support economic development in Pinal County.
- Silver Streaming Deal: BHP secured a $4.3 billion silver streaming deal with Wheaton Precious Metals, marking the largest precious metals streaming transaction ever, showcasing the company's strong performance in the precious metals market.
- Strong Stock Performance: BHP shares have increased by 44.06% over the past 12 months, currently trading at $75.20, which is 5.6% above its 20-day simple moving average, indicating robust short-term momentum.
- Analyst Rating Dynamics: The stock carries a Hold rating with an average price target of $51.33, while Argus Research upgraded it to Buy with a target of $68.00, reflecting optimistic market expectations for its future performance.
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Analyst Views on BHP
Wall Street analysts forecast BHP stock price to fall
3 Analyst Rating
1 Buy
1 Hold
1 Sell
Hold
Current: 75.070
Low
49.50
Averages
56.50
High
68.00
Current: 75.070
Low
49.50
Averages
56.50
High
68.00
About BHP
BHP Group Limited is an Australia-based resources company. The Company is a producer of commodities, including iron ore, copper, nickel, potash and metallurgical (steelmaking) coal. It is focused on offering a range of resources, which provides copper for renewable energy; nickel for electric vehicles; potash for sustainable farming, and iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. Its segments include Copper, Iron Ore, and Coal. Its Copper segment is engaged in mining of copper, silver, zinc, molybdenum, uranium, and gold. Its Iron Ore segment is engaged in mining of iron ore. Its Coal segment is engaged in mining of metallurgical coal and energy coal. The Company is also focused on operating Olympic Dam, Prominent Hill, and Carrapateena underground copper-gold mines in South Australia. Its operations are situated in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BHP Explores New Pathways for U.S. Copper Supply
- Copper Supply Chain Collaboration: BHP has signed a non-binding letter of intent with Faraday Copper to potentially restart the San Manuel copper mine in Arizona, which is expected to enhance the resilience of the U.S. copper supply chain and support economic development in Pinal County.
- Silver Streaming Deal: BHP secured a $4.3 billion silver streaming deal with Wheaton Precious Metals, marking the largest precious metals streaming transaction ever, showcasing the company's strong performance in the precious metals market.
- Strong Stock Performance: BHP shares have increased by 44.06% over the past 12 months, currently trading at $75.20, which is 5.6% above its 20-day simple moving average, indicating robust short-term momentum.
- Analyst Rating Dynamics: The stock carries a Hold rating with an average price target of $51.33, while Argus Research upgraded it to Buy with a target of $68.00, reflecting optimistic market expectations for its future performance.
See More
BHP and Faraday Sign LOI for San Manuel Acquisition
- LOI Signing: BHP and Faraday Copper Corp. have signed a non-binding letter of intent to explore the potential acquisition of 100% of BHP's San Manuel property in Arizona, with BHP receiving a 30% equity interest in Faraday along with shareholder and marketing rights.
- Financing Commitment: BHP has agreed to participate in any equity raise by Faraday over the next two years, up to a maximum of $20 million, providing essential funding support to advance the project.
- Mine Restart Potential: The LOI lays the groundwork for BHP and Faraday to explore the restart of the San Manuel copper mine and the development of a new copper hub, with the consolidation of adjacent Copper Creek and San Manuel properties enhancing capital efficiency and accelerating market entry of new copper units.
- Historical Context and Market Impact: The San Manuel mine was the largest underground copper mine in the U.S. before its closure in 1999, and with significant mineral inventory remaining, BHP's plans to restart operations could help meet U.S. copper demand and stimulate economic development in Pinal County.
See More
Ditch the Chips, Invest in Wires: BHP Reaches New Heights as Copper Surpasses Iron
BHP's Record Earnings: BHP Group reported a significant increase in earnings, with copper earnings surpassing those from iron ore for the first time, indicating a shift in the global economic landscape towards copper as a critical resource for the digital age.
Transition to Copper Age: The company's earnings report marks a pivotal moment, suggesting the end of the Iron Age and the beginning of the Copper Age, driven by the demand for copper in AI infrastructure and electrification.
Government Support and Strategic Moves: BHP's strategy includes aligning its production with future-facing commodities, supported by government initiatives like Project Vault, which aims to stockpile essential industrial metals.
Investment Opportunities: Investors are encouraged to consider BHP as a stable option in the mining sector, especially as it positions itself as a leader in copper production amidst rising demand and geopolitical challenges affecting supply chains.
See More
Vale's Stock Decline Reflects Market Sentiment
- Stock Fluctuation: Vale (VALE) closed at $15.90 on Tuesday, down 1.30%, reflecting overall market sentiment towards iron ore and metals, with investors focusing on commodity prices and capital return plans.
- Surge in Trading Volume: The company saw a trading volume of 56.6 million shares, approximately 50% above its three-month average of 37.7 million shares, indicating increased market interest in its stock.
- Performance Growth: Despite the stock decline, Vale's fourth-quarter results showed increased volumes of iron ore, copper, and nickel, with year-over-year EBITDA rising 17% to $4.8 billion, indicating robust fundamentals.
- Market Dynamics: Ongoing discussions between Rio Tinto and BHP regarding potential collaboration in Pilbara iron ore may affect global pricing, impacting Vale's margins, prompting investors to monitor iron ore price stability and trends in Chinese steel demand.
See More
Australia's Geographical Uniqueness and Economic Overview
- Geographical Uniqueness: Australia is the only country that occupies an entire continent, ranking sixth globally, and claims approximately 40% of Antarctica; if recognized, it would become the second-largest country by territory, highlighting its potential influence in international geopolitics.
- Population Dynamics: With a population of approximately 27.6 to 28.3 million, projected to reach 30 million by 2030, and driven by 60% migration, particularly from Asia, this reflects an increasingly diverse demographic structure that fuels economic growth.
- Economic Overview: Australia ranks 15th globally with a nominal GDP of about $1.8 trillion and $1.9 trillion by purchasing power parity, with the service sector contributing 70-75% of GDP, showcasing its service-oriented economic structure that enhances competitiveness in the global economy.
- Mineral Wealth and Exports: As the world's leading iron ore exporter with about 30% of global uranium reserves, Australia is actively developing rare earth production capacity, committing AUD 1.2 billion by 2026 to establish a Critical Minerals Strategic Reserve, aimed at securing supply chains for high-tech and renewable energy sectors.
See More
BHP Increases Copper Guidance for 2026 and 2027 Amid Strong Performance
- Copper Production Growth: BHP anticipates a 5% CAGR in copper production from 2027 to 2035, significantly enhancing its competitive position in a high copper price environment.
- Substantial Dividend Increase: The company declared a dividend increase of over 40% to USD 0.73 per share, reflecting confidence in operational performance and a positive outlook for future market conditions.
- Strategic Silver Streaming Deal: BHP's $4.3 billion silver streaming agreement with Wheaton showcases its strategic approach to capital allocation and maximizing returns, further solidifying its financial foundation.
- Effective Cost Control: The company achieved a 5% reduction in costs, translating to a 7% real-term decline, which not only enhances profitability but also provides greater financial flexibility for future investments and expansions.
See More
BHP Explores New Pathways for U.S. Copper Supply
- Copper Supply Chain Collaboration: BHP has signed a non-binding letter of intent with Faraday Copper to potentially restart the San Manuel copper mine in Arizona, which is expected to enhance the resilience of the U.S. copper supply chain and support economic development in Pinal County.
- Silver Streaming Deal: BHP secured a $4.3 billion silver streaming deal with Wheaton Precious Metals, marking the largest precious metals streaming transaction ever, showcasing the company's strong performance in the precious metals market.
- Strong Stock Performance: BHP shares have increased by 44.06% over the past 12 months, currently trading at $75.20, which is 5.6% above its 20-day simple moving average, indicating robust short-term momentum.
- Analyst Rating Dynamics: The stock carries a Hold rating with an average price target of $51.33, while Argus Research upgraded it to Buy with a target of $68.00, reflecting optimistic market expectations for its future performance.
See More
BHP and Faraday Sign LOI for San Manuel Acquisition
- LOI Signing: BHP and Faraday Copper Corp. have signed a non-binding letter of intent to explore the potential acquisition of 100% of BHP's San Manuel property in Arizona, with BHP receiving a 30% equity interest in Faraday along with shareholder and marketing rights.
- Financing Commitment: BHP has agreed to participate in any equity raise by Faraday over the next two years, up to a maximum of $20 million, providing essential funding support to advance the project.
- Mine Restart Potential: The LOI lays the groundwork for BHP and Faraday to explore the restart of the San Manuel copper mine and the development of a new copper hub, with the consolidation of adjacent Copper Creek and San Manuel properties enhancing capital efficiency and accelerating market entry of new copper units.
- Historical Context and Market Impact: The San Manuel mine was the largest underground copper mine in the U.S. before its closure in 1999, and with significant mineral inventory remaining, BHP's plans to restart operations could help meet U.S. copper demand and stimulate economic development in Pinal County.
See More
Ditch the Chips, Invest in Wires: BHP Reaches New Heights as Copper Surpasses Iron
BHP's Record Earnings: BHP Group reported a significant increase in earnings, with copper earnings surpassing those from iron ore for the first time, indicating a shift in the global economic landscape towards copper as a critical resource for the digital age.
Transition to Copper Age: The company's earnings report marks a pivotal moment, suggesting the end of the Iron Age and the beginning of the Copper Age, driven by the demand for copper in AI infrastructure and electrification.
Government Support and Strategic Moves: BHP's strategy includes aligning its production with future-facing commodities, supported by government initiatives like Project Vault, which aims to stockpile essential industrial metals.
Investment Opportunities: Investors are encouraged to consider BHP as a stable option in the mining sector, especially as it positions itself as a leader in copper production amidst rising demand and geopolitical challenges affecting supply chains.
See More
Vale's Stock Decline Reflects Market Sentiment
- Stock Fluctuation: Vale (VALE) closed at $15.90 on Tuesday, down 1.30%, reflecting overall market sentiment towards iron ore and metals, with investors focusing on commodity prices and capital return plans.
- Surge in Trading Volume: The company saw a trading volume of 56.6 million shares, approximately 50% above its three-month average of 37.7 million shares, indicating increased market interest in its stock.
- Performance Growth: Despite the stock decline, Vale's fourth-quarter results showed increased volumes of iron ore, copper, and nickel, with year-over-year EBITDA rising 17% to $4.8 billion, indicating robust fundamentals.
- Market Dynamics: Ongoing discussions between Rio Tinto and BHP regarding potential collaboration in Pilbara iron ore may affect global pricing, impacting Vale's margins, prompting investors to monitor iron ore price stability and trends in Chinese steel demand.
See More
Australia's Geographical Uniqueness and Economic Overview
- Geographical Uniqueness: Australia is the only country that occupies an entire continent, ranking sixth globally, and claims approximately 40% of Antarctica; if recognized, it would become the second-largest country by territory, highlighting its potential influence in international geopolitics.
- Population Dynamics: With a population of approximately 27.6 to 28.3 million, projected to reach 30 million by 2030, and driven by 60% migration, particularly from Asia, this reflects an increasingly diverse demographic structure that fuels economic growth.
- Economic Overview: Australia ranks 15th globally with a nominal GDP of about $1.8 trillion and $1.9 trillion by purchasing power parity, with the service sector contributing 70-75% of GDP, showcasing its service-oriented economic structure that enhances competitiveness in the global economy.
- Mineral Wealth and Exports: As the world's leading iron ore exporter with about 30% of global uranium reserves, Australia is actively developing rare earth production capacity, committing AUD 1.2 billion by 2026 to establish a Critical Minerals Strategic Reserve, aimed at securing supply chains for high-tech and renewable energy sectors.
See More
BHP Increases Copper Guidance for 2026 and 2027 Amid Strong Performance
- Copper Production Growth: BHP anticipates a 5% CAGR in copper production from 2027 to 2035, significantly enhancing its competitive position in a high copper price environment.
- Substantial Dividend Increase: The company declared a dividend increase of over 40% to USD 0.73 per share, reflecting confidence in operational performance and a positive outlook for future market conditions.
- Strategic Silver Streaming Deal: BHP's $4.3 billion silver streaming agreement with Wheaton showcases its strategic approach to capital allocation and maximizing returns, further solidifying its financial foundation.
- Effective Cost Control: The company achieved a 5% reduction in costs, translating to a 7% real-term decline, which not only enhances profitability but also provides greater financial flexibility for future investments and expansions.
See More
